No Jitters Here: 5 Starbucks Analysts Say Coffee Giant Is Making Right Decisions

Starbucks Corporation SBUX Thursday reported fourth-quarter results, with a revenue and earnings beat.

Morgan Stanley

Analyst John Glass maintained an Equal-Weight rating and a price target of $96.

“Outsized US comp sales of 11% and positive commentary on current trends assuage near term concerns about cyclicality, and US likely runs at higher end of 7-9% range,” Glass said in a note. “Investment spend pressures 1H23 margins, as expected, and FY23 EPS lands close to our prior expectations."

Wedbush

Analyst Nick Setyan reiterated a Neutral rating, while raising the price target from $92 to $96.

The company’s higher-than-expected quarterly earrings were driven by strong momentum in the US and better-than-feared international same store sales growth, Setyan mentioned. He added that the momentum in US same store sales growth could continue in the near term.

Check out other analyst stock ratings.

BMO Capital Markets

Analyst Andrew Strelzik maintained an Outperform rating and a price target of $105.

“SBUX’s F4Q22 EPS of $0.81 exceeded consensus by $0.09, reflecting stronger comp growth globally, margin upside, and $0.05 tax benefit,” Strelzik wrote in a note.

“Impressive momentum, particularly in the US, sets the stage as SBUX embarks on multi-year accelerated growth journey,” the analyst said. “We continue to firmly believe that SBUX’s strategic focus is in the appropriate areas to ease pain points and position for ongoing growth."

Stephens

Analyst Joshua Long reaffirmed an Equal-Weight rating, while keeping the price target unchanged at $91.

The company’s quarterly results were “better than expectations across the board, driven by strong trends in the U.S. from digital and cold beverage plus an improved outlook around China where trends could reach flat levels on a same-store sales basis exiting FY23,” Long said.

“Starbucks is making the right decisions to improve Partner relationships and improving efficiency but believe incremental visibility into operational execution is needed given a softening consumer backdrop and an ongoing zero tolerance policy for Covid in China."

RBC Capital Markets

Analyst Christopher Carril reaffirmed a Sector Perform rating, while raising the price target from $87 to $88.

Despite ongoing China uncertainty, the fiscal 2023 guidance “generally aligns with that provided at SBUX's September Investor Day,” the analyst wrote. “But given lack of visibility and risk associated with a 2H-weighted guide, we see shares as likely range-bound near-term."

SBUX Price Action: Shares of Starbucks had risen by 9.86% to $93.03 at the time of publication on Friday.

Related Link: Starbucks Bringing NFTs To Rewards Program: How You Can Sign Up And Why It's Important